New York Digital Media Company Latest Adds Bitcoin to Balance Sheet

Townsquare Media, a New York-based digital marketing and radio station company, is the latest to back the original cryptocurrency, adding $5 million worth of Bitcoin (bitcoin) to its balance sheet.

A sort of archive Macroscope, a Twitter account focused on institutional trading, made the discovery on May 10, following the SEC’s revelations of Townsquare’s purchase of Bitcoin.

According to the document, the company “invested a total of $5 million in Bitcoin” in the first quarter of 2021, explaining why it chose the crypto investment, stating:

“The company believes in the long-term potential of digital assets as an investment. The company may increase or decrease its holdings of digital assets at any time based on our view of market conditions.”

Although bitcoin price Undisclosed at the time of the purchase, Townsquare said it recorded a $400,000 impairment loss due to “fair value changes” in its digital asset holdings during the quarter.

The alleged losses appear to be due to the unusual way companies are required to report cryptocurrency holdings. Townsquare also said it could have sold its bitcoins for a total of $6.2 million on March 31, when bitcoin closed around $45,500 that day. The company said it considers its bitcoin investments liquid because it is easy to convert into cash using cryptocurrency exchanges.

related: MicroStrategy shareholder letter: We will ‘vigorously pursue’ more BTC purchases

Although the purchases are small compared to MicroStrategy Bitcoin worth nearly $3 billionTownsquare Media is in the middle of the list in terms of the number of cryptocurrencies held by public companies.

According to Bitcoin Treasure, Place If you measure the company’s bitcoin holdings, Townsquare would be bitcoin mining company Cleanspark Inc. holds about $4.3 million, and Cathedra Bitcoin Inc. holds just over $5 million worth of bitcoin.

As the price of bitcoin slides this year and recently hit a 10-month lowother companies with large positions in the world’s first cryptocurrency reported losses due to assets on their balance sheets.

In early May, crypto investment manager Galaxy Digital Holdings Reported loss of $111.7 million Q1 2022, due to unrealized losses on its cryptocurrency portfolio. MicroStrategy CEO and Bitcoin advocate Michael Saylor also Investors must be assured Since the company took out a $205 million loan backed by bitcoin in March, the company could repay the debt if asked.

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